Modelling money demand in open economies: the case of selected Asian countries
While early work on money demand estimation focused primarily on the importance of domestic variables, many studies in later years have suggested that foreign variables also influence the domestic demand for money in an open economy. With the rapid financial market liberalization in some of the Asian economies in the last couple of decades, open economy factors have become very important in the determination of money demand. Therefore, this paper aims to ascertain the degree to which foreign opportunity cost variables influence money demand in the Philippines, Singapore and South Korea. Cointegration analysis is performed and an error correction model estimated using quarterly time-series data. The empirical results support the inclusion of foreign opportunity cost variables in the money demand function.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (1999)
Issue (Month): 9 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1129-1135. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.